A Podcast Slip Just Put This 5,300% Comeback Stock in Amazon’s Crosshairs

If you ever needed a reason to believe that you can come back from almost anything (besides Tiger winning The Masters again)… just look at Carvana.

This company went from pandemic superstar to irrelevant in record time. At its peak in 2021, Carvana (aka the car vending machine company) was cruising at $360 a share. As interest rates shot up and used car prices cooled, Carvana’s business model hit a brick wall. 

By December 23, 2022, the stock had cratered to $3.55. That’s a 99% drop. The company was loaded with over $6.5 billion in debt, torching nearly $300 million in cash per quarter, and facing serious questions about whether it’d survive 2023 without filing Chapter 11.

But then came the glow-up. Like an old crumbling farmhouse on fixer upper… Carvana got a fresh new debt restructuring, some shiplap, a fresh coat of white paint, and next thing you know? The stock moonwalked its way up 5,300% to $216. Yes, five thousand three hundred percent. The dip of all dips. The Kobe 81-point game of dip buys. If you bought the bottom, congratulations… you're now legally required to teach personal finance on TikTok.

But just when Carvana was getting its groove back, guess who decided to pull up in a Prime delivery truck? If you guessed Amazon, you would be correct (kind of gave it away didn’t I?).

The Everything Store is now eyeing the one thing they haven’t sold yet… used cars. On a podcast (where everything goes down nowadays), Amazon Autos’ director Fan Jin flippantly mentioned, “Yeah, we’re getting into used cars soon.” In other words… Carvana just got added to Jeff Bezos’ hit list (right between bookshops and retail margins).

Amazon already sells new Hyundais through its site in select markets. Customers pick a car, secure financing, e-sign paperwork, then pick it up at the dealership… no haggling, no hidden fees, no awkward “let me talk to my manager” tactics. According to Jin, buyers have literally purchased cars while working out at the gym or binge-watching TV in bed.

Amazon’s angle is full e-commerce car buying with transparency and convenience. You know, all the stuff traditional dealerships offer in the same way WebMD offers peace of mind.

But used cars are where things get messy. Unlike new inventory, used cars need inspections, reconditioning, vehicle history reports (stuff Carvana already handles in-house). Amazon isn’t there… yet. They’re still relying on third-party dealers and haven’t shown interest in delivery, warranty upsells, or cleaning Cheeto dust out of a 2012 Altima. That’s why Wall Street isn’t hitting the panic button… yet.

JPMorgan called Amazon’s move more of a “lead gen tool” for dealers than a direct threat to Carvana’s vertically integrated model. BofA echoed that, saying Amazon doesn’t currently touch Carvana’s core differentiators. Piper Sandler actually upgraded Carvana to Overweight with a $225 price target, arguing that market fragmentation and slow-moving competitors make room for serious growth… even if Amazon joins the race.

And Wall Street seems to agree. In just the past five days, Carvana’s stock is up 28%. Amazon? A respectable 5%.

Carvana’s comeback is one of the most impressive turnarounds I’ve ever seen. But now, it’s no longer fighting for survival… it’s fighting to stay ahead of a company that’s pretty good at, well, everything.

P.S. Just when you thought our beloved congressmen couldn’t get any greasier, one Republican lawmaker decided to YOLO $175k into a stock… right before a major FDIC announcement hit. Lucky timing? Insider edge? You be the judge. We broke it all down inside our recent Stocks.News premium article… click here to check it out ASAP. 

Stock.News has positions in Amazon.